BILL ANALYSIS Ó
AB 1389
Page 1
Date of Hearing: May 1, 2013
ASSEMBLY COMMITTEE ON AGRICULTURE
Susan Talamantes Eggman, Chair
AB 1389 (Committee on Agriculture) - As Amended: April 24,
2013
SUBJECT : San Joaquin Valley Quality Cotton District.
SUMMARY : Makes inoperative, as specified, the statutes and
regulations the San Joaquin Valley Quality Cotton District
(district), as of January 1, 2014, until specified.
Specifically, this bill :
1)Requires the statutes and regulations of the district to
become inoperative January 1, 2014, unless either of the
following occurs:
a) A resolution is approved in accordance with statutory
procedures of the district, as of January 1, 2013, to
continue operation of this chapter; or,
b) The Secretary of the California Department of Food and
Agriculture (CDFA) receives a petition from members of the
San Joaquin Valley cotton industry, and determines, that
due to industry circumstances, it is in the best interest
of the state and industry, that specific sections of the
district's statutes should be activated. If CDFA makes
such a determination, they may establish a committee to
advise them, made up of cotton growers, handlers of whole
cottonseed, handlers of raw cotton fiber, and
representatives of cotton ginning organizations.
2)Requires CDFA to post to their Internet Web site, if either 1)
a) or b) occurs.
3)Requires specified statutes to remain operative and to be
administered by CDFA dealing with certified cottonseed,
certified cottonseed and colored cotton, and colored cotton.
4)Permits CDFA to not administer these provisions or any
provisions of the district statutes, unless they determine
there are sufficient funds in the district account, or from
other sources, including the cotton industry, to pay the costs
incurred by CDFA.
AB 1389
Page 2
EXISTING LAW establishes the district as all counties within the
San Joaquin Valley where cotton is grown, creates an 11 member
board made up of seven cotton growers, three industry members
(cottonseed oil crushers, handlers of raw cotton fiber, cotton
ginners or their employees thereof), and one public member.
Statute provides authority for the board to establish specified
cotton quality standards; review and approve cotton varieties
for planting in the district; conduct tests of cotton production
and quality as specified, including accessing fees necessary for
conducting the tests; hold periodic referendums, as specified,
for continuation of the district; require all approved cotton
varieties to be labeled, as specified; and, make recommendations
to CDFA on all matters related to the district. Additional
powers and duties are given to the board upon implementation of
promotion and research funding, as specified. Provides specific
requirements for referendum votes for operation of the district
and permits referendum votes whenever the board proposes changes
to specified varieties quality standards; authorizes an
enforcement funding assessment of not more than six dollars ($6)
per hundredweight on cottonseed delinted for planting purposes;
authorizes assessments for promotion and research funding on
cotton growers in the district not to exceed one-half of one
percent of each growers gross cotton value of the previous year;
and, provides provisions for enforcement and violations, as
specified.
FISCAL EFFECT : Unknown. Legislative Counsel has keyed this
bill fiscal.
COMMENTS : California cotton was known as the King in the '60s
and '70s due its high quality, being of long staple lengths and
high tensile strength. In 1967, the "One-Varity Cotton
District" was created, requiring one variety of cotton be grown
in the district to prevent cross contamination with other lower
quality varieties of cotton. This proved to be very effective
until newer, better varieties of cotton were developed, and then
the statutes were amended to expand the permissible cotton types
that could be grown.
Due to the improved higher quality cotton varieties that can now
be grown outside the San Joaquin Valley, reduced market prices,
and water shortages, the valley's planted acreage has had a
steady decline over the last two decades. While the planted
acreage hit a high of over 1.1 million acres in the late 90s, in
AB 1389
Page 3
2013 it is estimated to be 300,000 acres, down nearly 37% from
last year. This greatly reduces the concerns of cross
contamination of varieties, and the need for enforcement of this
body of law.
Therefore, the industry, in an effort to reduce costs to its
producers, has requested to make the district statutes dormant,
while requiring limited enforcement of three specific sections
critical to the integrity of cotton varieties and purity.
Procedures are included to reactivate portions, or the entire
relevant statutes, as well as a caveat, in case funds are
depleted and CDFA can no longer cover their costs, unless an
alternative funding source occurs.
CDFA estimates that it will cost roughly $50,000 to operate the
program annually. The program has a reserve of approximately
$150,000. It is unknown what the funding source will be after
the program funds are fully expended.
REGISTERED SUPPORT / OPPOSITION :
Support
California Cotton Growers and Ginners Association
Opposition
None on file.
Analysis Prepared by : Jim Collin / AGRI. / (916) 319-2084